What’s your take on the housing market in the next year or so?
My guess is that the high priced areas are perhaps half way down, and that already reasonably priced areas (which have declined little so far) will take a more moderate hit over the next year, as
- financing continues to get even scarcer,
- hundreds of lending banks fail,
- inflation starts to push up mortgage rates,
- unemployment and recession cut into the pool of financially healthy buyers, and
- more sensible lending requirements cut out the financially unhealthy buyers.